Abstract
There has been considerable attention paid in the entrepreneurship literature to the role of ethnicity in new venture formation. However, there has been comparatively little attention paid to the role of ethnic ties in new ventures after founding. In this article, we present the results of a case study of an international network of high-end fashion leather goods producers, distributors, and retailers in Russia, Eastern Europe, and the Middle East. Based on our study, we conclude that while ethnic ties can be an important resource when founding a new venture, these same ethnic ties can become increasingly limiting as constituent firms grow and develop. We go on to present a model of the enabling and constraining effects of ethnic ties and explain how and why their dynamics change over time.
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